How Automation Transforms Insurance Claims Processing

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Automation Transforming Insurance Claims Processing

Insurance claims processing is a lengthy, time-consuming, and complicated process. It involves a lot of repetitive steps like entering data in forms, verifying it with the company data, and checking eligibility. When performed manually, these tasks take a toll on your employees’ time because they tend to get time-consuming and boring. So, it would increase the probability of errors and reduce overall efficiency. Insurance claims processing automation helps companies reduce these errors by delegating tasks to an intelligent bot. Despite their importance, in 2018, only 5 percent of insurance companies used automation in claims submission. Moreover, 70 percent of these companies are not even considering implementing it. In this post, we discuss five prominent advantages of transforming insurance claim processing with automation

5 Benefits of Automation in Insurance

Streamlines Claims Processing

Faster claims processing is critical to the growth of insurance companies. However, sinc they’re time-consuming and manually fulfilled, they can frustrate both the consumer and the insurer. Most clients file claims because they’re in desperate need of money. When you’re unable to provide swift service to them, they’ll lose trust in you and may switch to your competitor. Typically, claims processing take time because insurers need to collect data from multiple sources, like: 

  1. To process life insurance or health insurance claims, they need reports and certificates from hospitals
  2. To process travel insurance, they need evidence of lost baggage and boarding passes
  3. To process auto insurance, they need proof like police reports, licenses, and vehicle damage photos

While collecting this data takes time, human errors during the process delay the process even more. Delaying this process damages company reputation and loses customer satisfaction in the long-term. Through automation, you delegate your claims intake process, assessment process, and claims settlement processes to capable bots. So, they can eradicate friction and smoothen the claims process through machine learning, RPA, and human intelligence. 

Studies say that automated processing reduces manual work by 80 percent. They also cut down the processing time by a whopping 50 percent

Enhances Policy Management

Automation also helps the policy management process in insurance use cases. When policies are issued, companies have already made an underwriting decision. At this stage, insurers need to update their data in the internal systems and communicate it with the consumer. These processes need heavy manual intervention from your employees. 

However, using pre-built RPA and AI, you can easily automate the policy issuance process, and reduce time and resource utilization. So, when your existing policy-holders submit update requests to change small details, your automation solutions help. These solutions can help extract these details and feed them into the right internal documents automatically. Broadly applying automation solutions in the insurance policy management space transforms other document-intensive operations. 

Apply Intelligent Process Automation (IPA) to Regulatory Compliance

The insurance industry is a highly regulated one whose requirements differ by state. So, insurers need to respond to requests from the state and give them information regularly. IPA helps you save time on these processes by developing natural language requests that automate common retrieval processes. They can also differentiate provisions and term definitions across various states. They can also use IPA to automate the process of extracting archived data to address queries and responses.

Automate Commercial Underwriting Process

Commercial insurance providers may need thousands of pages in documentation in their underwriting process. These documents need to be reviewed to make an accurate quote. With IPA, companies will be able to automate their data extraction processes and enhance the complete workflow. IPA helps them mine the right detail from the pool of unstructured data from their forms. So, it’ll end up reducing response time and enhancing the entire customer satisfaction. Some benefits for the insurer include greater accuracy, higher efficiency, and profits.

Use Predictive Analysis on Claims to Prevent Frauds

Through predictive analysis, pre-scanning and verifying loss claims become extremely simple. When you verify these claims earlier, you can reduce the possibility of frauds significantly. So, you check for risk factors before processing the settlement. With automation, a fraud robot will be able to collect information, validate claims, prevent frauds, and proceed with the settlement effectively. To support this functionality, try Document AI and OCR to mine the relevant data. 

With a software robot, insurance companies will: –

  1. Extract data from emails and forms
  2. Collect information from integrated policies, claims, and third-party data through APIs
  3. Verify the validity of the claims
  4. Allow your system to self-learn about risk factors
  5. Manage and implement your model through custom models

Conclusion

Automating your processes will cause a paradigm shift in your claims processes. It’ll simplify your workflow and boost customer satisfaction by ten folds. So, evaluate your processes carefully and look at the way you can optimize them to give results by transforming insurance claim processing with automation.

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